How to Grow Your Savings for Your Future Entrepreneurial Dreams

Over the years, I’ve run into a lot of folks with entrepreneurial aspirations. One of the significant stumbling blocks they have is raising the money necessary to bring these dreams into reality. While many of them anchor their dreams on hopes of raising investment capital or borrowing money from friends and family, the truth is that few entrepreneurs find success by following this route. I once worked with a group of women who had an outstanding business plan, yet they couldn’t raise the money needed from either of these sources. They ended up getting the money by maxing out their credit cards, which is incredibly risky. A better solution is to work to increase your savings. As you flesh out your business plan, you can work on some of the suggestions we make in this post to help increase your savings. Maybe this won’t fully fund your venture, but it will help supplement other funding sources to put you on a firm footing when you eventually start your business.

A compelling 2024 study by the Boston Consulting Group, titled “The Filipino Dream,” reveals a striking aspiration among Filipinos: an impressive 56% dream of entrepreneurship, just shy of health security at 58%. This significant statistic illustrates an undeniable trend: more Filipinos yearn for financial independence through business ownership. By choosing to become their own boss, they are not just dreaming; they are actively seeking a path to escape the constraints of traditional employment. This desire for autonomy and success embodies the spirit of a nation ready to innovate and thrive. With over 115 million residents (the 13th most populous country in the world according to the Boston Consulting Group), this post focuses on how these would-be entrepreneurs can increase their savings to enliven their dreams and make them a reality. Now is the time to harness this ambition and invest in the future of Filipino entrepreneurship!

How to increase your savings

Yet, for countless individuals, this dream feels tantalizingly out of reach due to financial constraints. Starting even a modest business often requires significant capital, and with the average person juggling multiple financial obligations—bills, daily expenses—it can seem nearly impossible. However, don’t lose hope! Many determined individuals choose to save diligently, paving the way to their entrepreneurial aspirations. If you’re among those dreamers, take heart; there are proven strategies that can increase your savings journey and bring your dreams closer to reality. Here are essential tactics to consistently increase your savings so you can secure the capital needed to launch your future business:

1) Open a high-interest savings account

Keeping your money in a regular savings account, especially if it’s in a traditional bank, isn’t going to grow your money very quickly. In fact, at an abysmal 0.59% APY for the average savings account, your money may even lose its purchasing value due to inflation. Thus, look for a high-interest savings Philippines account instead to help your funds grow much faster and enable you to achieve your financial goal more effectively.

In particular, check savings accounts offered by digital banks, as they can usually offer higher interest rates due to lower overhead costs. Maya, for example, offers account holders favorable interest rates of up to 15% per year, as well as features like Maya Personal Goals–an innovation that you can use to build your fund for your future business venture and collect once your savings goal has reached maturity.

You may also look into time deposit accounts that compound the interest on your savings for your entrepreneurial venture—just with the caveat that you can’t withdraw your money within a certain period (such as five or ten years for a certificate of deposit) or, in the case of Maya, can only do so with a fee. But even this may work to your advantage as it deters you from touching your savings, allowing you to grow your future business capital without disruption steadily.

2) Cut down on unnecessary expenses

One effective way to save more and thus accumulate business funds faster is to cut unnecessary lifestyle expenses. To do this, start by tracking your spending in detail, either by using a budget tracker or even just a simple spreadsheet. Go over each expense and determine which ones you can reduce or eliminate. You can then dedicate the savings you get from your cost-cutting efforts toward your business aspirations.

For example, perhaps you noticed that you typically spend a lot on delivery apps. Instead of splurging on this convenience, choose instead to prepare home-cooked meals that will allow you to save money or even decide to pick up the food yourself instead of paying a delivery fee. Even cutting down seemingly negligible expenses, such as unused subscriptions, can make a significant difference over time without any disruption in your lifestyle. Every peso you save now will count towards a bright future for your dream business.

3) Start a side hustle

Additional income from a side hustle can increase your savings, getting you a step closer to fulfilling your entrepreneurial goals. Look into freelance jobs you can do on the side so that you can earn extra cash. You may also ask around your neighborhood or among friends for tasks that you can do for pay, such as dog sitting or tutoring students. If you can start your entrepreneurial venture as a side hustle, you not only increase your savings but also gain exposure and start building a reputation for your business that provides a boost when you actually launch it. If you’re a marketer, you can start doing small projects for folks in your social network, or if you’re a website developer or designer, you can offer to complete projects on platforms like Fiverr.

Make sure that you immediately put your side hustle earnings into your savings account rather than being tempted to spend them immediately. If possible, set up automatic transfers to your savings account to reduce this temptation. Stay disciplined and monitor your savings regularly to keep yourself motivated in your savings journey.

4) Invest in low-risk financial instruments

In addition to saving money, consider setting aside funds to invest in low-risk financial instruments such as money market funds and mutual funds. Fortunately, investing is now much more manageable, even for beginners, as many e-wallets like Maya allow users to make investments directly through their app.

These investments can help you reap higher returns compared to a regular savings account while remaining relatively safe when compared with buying stocks. Before you make any investment, however, make sure you do your research first and verify that you’re only investing through legitimate channels; you don’t want to get scammed and lose the hard-earned money that you were saving for your business. Also, avoid precarious investments that promise higher rewards, such as buying futures, crypto, or commodities.

5) Sell unused items

Another great way to earn quick cash for your business endeavor is to sell unused items. Check your wardrobe for clothes that you’re not wearing anymore yet are still in good condition, as well as other preloved items such as gadgets or books just lying around in your home. Make sure to take clear photos of the items and do some research on market prices so that your listings have a better chance of attracting potential buyers. Not only does this give you extra cash to add to your savings for your future business dealings, but you’ll also get to declutter in the process. They can be sold in places like Facebook Marketplace or local resale shops.

6) Adopt a frugal mindset

“Spend less than you earn” is the golden rule that can help you grow your savings faster and stay disciplined enough to achieve your entrepreneurial goals. To start, avoid unnecessary luxury purchases and stick only to the essentials. Whenever you do need to purchase something, search for a brand that you can get at a much lower price without sacrificing quality or comfort. Living as simply as you can will allow you to free up more of your usual budget and redirect it to your business fund savings instead.

Conclusion

Starting your own business is no impossible dream, so long as you stay disciplined, patient, and thoughtful about your financial choices. Apply the strategies above to accelerate the growth of your savings and move closer to achieving your entrepreneurial dreams.

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